đBig shorters are betting $6.9B against MicroStrategy stocks đ
Several institutions are still holding out for a decline in the stock price of Michael Saylorâs software intelligence firm MicroStrategy, with $6.9 billion in major short positions.Â
However, the short-seller almost tripled in six months.
As of June 6, MicroStrategy has 18 short positions listed on investment research firm Fintelâs âThe Big Shortsâ list â which is a list of the largest short positions disclosed by institutions to the United States Securities and Exchange Commission.
The biggest position, approximately $2.4 billion, is also the 27th-largest net short position among institutions.
It is just over a billion less than Amazonâs highest net short position of $3.59 billion. The biggest net short position in the U.S. is on the SPDR S&P 500 Trust exchange-traded fund (ETF), which is $114.06 billion.
Despite some institutions betting on a MicroStrategy fall, thereâs been a marked decrease in short-seller confidence. The short-interest ratio for MicroStrategyâs stock has decreased by nearly 50% over the last six months, from 3.1 days to 1.5 days.Â
The popular indicator helps traders analyze the risk of a short squeeze by indicating the average number of days short sellers need to close their positions. The lower the number of days, the less short-seller interest.
MicroStrategy stock has rallied since December 2023, when it started at $570 and has since tripled to $1,656.
It comes only months after crypto-skeptic investment firm Kerrisdale Capital put pressure on MicroStrategy shares following the launch of spot Bitcoin BTC $69,413 exchange-traded funds (ETF) in 2024.
âThe days when MicroStrategy shares represented a rare, unique way to gain access to Bitcoin are long over,â Kerrisdale Capital explained in a March 28 analyst note.
More recently, Cointelegraph reported that MicroStrategy has significantly outperformed Bitcoin over the past twelve months. The stock is up approximately 469% over the past year, with Bitcoin up 168%.
